Jaishankar In Moscow To Boost Ties Amid Trump Tariffs, Flags India-Russia Trade Deficit

Last Updated:August 21, 2025, 00:31 IST

India-Russia trade reached $68 billion in 2024-25, however a significant imbalance emerged. S Jaishankar worried resolving this at the 26th IRIGC-TEC session in Moscow.

External Affairs Minister S Jaishankar on Wednesday stated that India-Russia bilateral trade has actually proliferated over the last 4 years, however a significant trade imbalance has actually accompanied this development, in his opening remarks at the 26th session of the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation (IRIGC-TEC) in Moscow.

“Over the last 4 years, Excellency, our bilateral sell items has actually increased, as you have actually kept in mind, more than five-fold from USD 13 billion in 2021 to USD 68 billion in 2024-25 and it continues to grow,” Jaishankar said. “However, a major trade imbalance has accompanied the growth; it has increased from USD 6.6 billion to USD 58.9 billion which is about nine times. So we need to address that urgently.”

He detailed the essential program for the session, stating, “Addressing tariff and non-tariff trade barriers, eliminating traffic jams in logistics, promoting connection through the International North-South Transport Corridor, the Northern Sea Route and the Chennai-Vladivostok Corridor, effecting payment systems efficiently, prompt completion and execution of the Programme of Economic Cooperation till 2030, the early conclusion of the India-Eurasian Economic Union FTA, whose regards to recommendation were settled today, and routine interaction in between business of the 2 nations– these are amongst the crucial elements.”

Jaishankar likewise worried the continuing dedication of both countries’ leaders, keeping in mind, “Our leaders stay carefully and frequently engaged. They supply us smart and useful assistance to our Special and Privileged Strategic Partnership. They had 2 ‘personally’ conferences in 2015 and are personally devoted to more advancing our tactical collaboration.”

Prime Minister Narendra Modi checked out Moscow for the 22nd Annual India-Russia Summit in July. This was his very first see to Russia in 5 years. He and President Putin satisfied on the sidelines of the BRICS Summit in Kazan, Russia in October.

Russian President Putin is anticipated to go to India later on this year.

The remarks come in the middle of a complicated geopolitical background, with the existing United States administration under Donald Trump enforcing tariffs on Indian products in reaction to India’s continuous purchase of Russian petroleum.

What Is IRIGC-TEC

IRIGC-TEC represents the India-Russia Inter-Governmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation. This bilateral online forum assists in top-level discussion in between the federal governments of India and Russia, intending to improve cooperation throughout different sectors, consisting of trade, energy, defense and cultural exchange.

Why The Imbalance

The variation in trade in between India and Russia has actually been a subject of issue. In the 2024– 25, bilateral trade reached a record high of $68.7 billion. India’s exports to Russia were substantially lower, amounting to just $4.88 billion, resulting in a trade imbalance of around $60 billion. This imbalance is mostly due to India’s considerable imports of Russian petroleum, which now make up about 35% of India’s overall oil imports.

To resolve this imbalance, both countries are checking out procedures to increase Indian exports and diversify trade. These consist of improving connection through efforts like the International North-South Transport Corridor and the Chennai-Vladivostok Corridor, enhancing payment systems and assisting in higher interaction in between services.